Tampa Palms, Westchase, Carrollwood and Tampa Bay Real Estate News From Jeanne Prigitano

Despite the abysmal housing market the past few years, the majority of Americans still place a high value on homeownership according to a new nationwide survey from the National Association of Home Builders (NAHB).

Here are some of the major findings.

· 96% of homeowners are happy with their decision to own a home. Surprisingly, 84% of underwater homeowners are also happy with their decision to own.

· 79% of homeowners would advise a family member or close friend who is just starting out to purchase a home. 69% of underwater homeowners offered the same advice.

· 74% said that despite ups and downs in the housing market, owning a home is the best long-term investment they can make.

· 78% said that owning their own home is very important to them.

· 68% of the respondents who do not currently own a home said that buying a home is a goal.

As part of this survey, respondents were also asked about the federal government’s role in homeownership. The results were consistent across party lines.

· 75% feel it is appropriate for the federal government to provide tax incentives to promote homeownership.

· 73% oppose eliminating the mortgage interest deduction.

For complete poll results go to: NAHB POLL RESULTS

If you have been thinking about selling your house for less than what you currently owe (short sale), then 2012 may be the year to do it.

A lender has always had the option of placing a deficiency judgment on the Seller. A deficiency is the difference between what the house sold for and what is owed. In helping homeowners with short sales, part of the negotiating process is to ask the lender to forgive the deficiency. If the deficiency is forgiven, the bank can issue a 1099 for the difference because it is considered income. I know that you are wondering how on earth a deficiency can be considered income. Well, if you are short $100,000 and don’t have to pay it back, it is as if someone just gave you $100,000. This deficiency is now taxed as additional income (phantom tax).

The Mortgage Debt Relief Act of 2007 can protect borrowers from this phantom tax if it is the primary residence (homestead). However, this rule changes on January 1, 2013. Lenders must forgive the difference in writing by December 31, 2012 in order for the deficiency to be considered non-taxable. For more information about the Mortgage Debt Relief Act please go to: http://www.irs.gov/individuals/article/0,,id=179414,00.html

Since short sales can take a significant amount of time to complete, now may be the best time to list your home. Keep in mind if you decide to rent your home and subsequently sell it, it will no longer be considered a primary residence and the deficiency may be subject to the phantom tax.

If after doing all of the research, you decide that a short sale is your best option, please contact me. I have helped other families in the Tampa Bay area with the short sale of their home. Just make sure you have all the facts. Please pass this information to any family members or friends who may find it useful.

The Tampa Bay Area Housing Market showed some definite improvement in 2011. December 2011 sales showed an increase of more than 12.5% over November 2011. Although sales were down by 7.5 % in December 2011 over December 2010, overall 2011 sales increased 11.5 % over 2010. That is a significant improvement, especially considering that there were fewer homes for sale in 2011. The year ended with 5.3 months inventory. Six months inventory is considered a balanced market. Anything over 6 months is considered a Buyer’s market and anything less than 6 months is considered a Seller’s market. I don’t believe we are in Seller’s market, just yet, but we are definitely trending towards a more balanced market. More on that, later. The average sales price in December 2011 increased 7% from November 2011 and was actually 3% higher than December 2010. Nevertheless, average sales price for 2011 was approximately 5% less than in 2010 largely due to very low prices in the first quarter of 2011.

So, where are we headed in 2012? I had predicted that 2011 would be the year we would begin to see some stabilization in the housing market. After a rough first quarter, I believe that things did stabilize. I don’t think that we will see any major price declines in 2012 and in some areas prices have already stopped declining. Clear Capital, a housing valuation company, is predicting a 7.4% home price increase in 2012 for the Tampa Bay area making it the 6^th in the nation in predicted price improvement.

Based on my own experiences in 2011, this is what I think the market will look like in 2012. Forty percent of my 2011 sales were to investors with investor sales heavily skewed to the first half of the year. Of my remaining non-investor sales, a whopping 85% were to first time home buyers. Only 25% of my sales were bank-owned foreclosures all in the first quarter. Even investors were conventional sales. Twenty-eight percent of conventional sales were in new construction.

As 2011 progressed, there were fewer foreclosures. I believe that trend will continue. I still see the first-time homebuyer being a strong market. Out of the 3 buyers I am actively working with now, 2 are first time homebuyers and one is under contract on new construction. Housing is more affordable for the first time homebuyer, interest rates are low, and they don’t have a house to sell. My other buyer is a retiree who is relocating. Baby boomers still see Florida as the place to be. The lifestyle is great and it is more affordable than other parts of the country. It will continue to be a buyer’s market trending towards a more balanced market (neither a buyer nor seller’s market). I think the inventories are low because many people, who would have sold, have decided to stay in their homes or rent. They can afford the mortgage even if they are underwater and have decided to just stay put. Interest rates will probably stay low but will not stimulate as many sales as hoped. Interest rates could be zero but buyers still need to have good credit scores and some down payment. What we really need is jobs. It will also be interesting to see what affect this election year will have on the 2012 housing market. Stay tuned.

November overall sales for the Tampa Bay area are down once again by approximately 8% over October 2011. This is a bit misleading because inventories are continuing downward with 7.5% fewer properties for sale in November over October 2011. Months inventory has remained stable over the last 3 months at 6 months and relatively stable hovering between 5.5% to 6.8% since March of this year. Sales were still almost 8% higher in November 2011 over November 2010 and over 13% higher year-to-date.

Average sales price continues to decline. Sales price is down by approximately 3 % over October. However, average sales price is still up by 8.5% since January 2011. There was a huge spike in June of this year, thus showing a decline for subsequent months.

Next month I will give you the analysis and my impressions for the year that was and outlooks for 2012. In the meantime, have a Joyous Holiday Season.

October's overall sales for the Tampa Bay area are down by approximately 9.5% over September 2011. Once again, there are far fewer properties for sale. Inventories were down by 10% in October over September and down by over 38% from the beginning of the year. October 2011 sales are over 14% higher that October 2010 and year-to-date sales are still over 13% higher than this time last year. Months inventory is at 6 months.

Disappointing is the average sales price for October 2011 which is approximately 5% lower than September. On the bright side, sales of single family homes have remained stable throughout the year. Condo sales have declined throughout the year

If you want statistics or any information for your particular neighborhood, just let me know.

A couple of weeks ago, Bank of America announced a short sale incentive program. This program will provide up to $20,000 to qualified sellers. They haven’t specified exact criteria, other than restrictions apply, and each case may be different. Nevertheless, this is what I know about the program.

• Payouts range from $5,000 to $20,000 and is based on the unpaid balance of the mortgage as of August 2011. Homeowners might be able to receive 5% of the unpaid balance. For example, if you owe $200,000, the payout would be $10,000. It is not based on the sale price. It is based on what you owe.
• The program is not limited to delinquent borrowers. Even if you have a good payment history and want to sell your home, you may be able to qualify.
• Bank of America may also consider waiving the deficiency judgment (the difference between what is owed and the sale price of the house).
• To see if you qualify, contact Bank of America if you haven’t already received a letter in the mail from Bank of America.
• Time may be running out. If you do qualify, you must have your home listed by November 30 and the transaction must close by August 31, 2012.
• Right now, this is a test program for Florida homeowners only. If the bank is successful in reducing their costs and getting bad mortgages off their books, it will be rolled out to other parts of the country.

If you or someone you know can take advantage of this program, please contact me in order to get your home listed by November 30. To get more information from Bank of America, you can call them at 877-459-2852.

September overall sales for the Tampa Bay area are down by about 14% over August 2011. That’s not great news but put into the larger context, there are far fewer properties for sale. Year-to-date sales are still over 12% higher than this time last year with September 2011 sales being 6.5% higher than September 2010.

The number of properties for sale has declined consistently and significantly throughout the year. The Tampa Bay area started the year with over 16,000 residential properties for sale and in September there were less than 10,000 properties on the market. Months inventory is still less than 6 months. That is half of where the market was the beginning of the year.

The average sales price for September 2011 is approximately 1.5% higher than August. The higher end of the market is showing some strength.

If you want statistics or any information for your particular neighborhood, just let me know. Please contact me if you are considering selling your home. We can discuss if it is the right thing for you.

As I mentioned last month, I was crossing my fingers waiting to see Tampa Bay’s housing statistics for August following the debt crisis and lowered bond rating. I am very happy to report that the Tampa Bay area is looking good.

Sales for August 2011 were up slightly from July 2011 with fewer houses listed for sale. Average sales price has started to inch up. Sales are significantly higher than this time last year with year-to-date sales approximately 13% higher. Earlier this year, the biggest increase in sales was in the condo and townhome segment. August sales showed that single family homes increased over last year by the same percentage as did condominium sales. Months inventory is at 5 months. Although I still think it is premature to call it a seller’s market, everything is trending in a positive direction.

If you live in Florida and haven’t already received your TRIM (Truth in Millage) notice, you should be receiving it very soon. I live in Tampa and got mine over the weekend.  The Trim notice shows the assessed value, any exemptions, taxable value and market value of your property.

Property tax is calculated by multiplying the taxable value of the property by the millage tax rate. The taxable value is calculated by subtracting exemptions (i.e. homestead exemption) from the assessed value. The question I am always asked is how does the property appraiser determine the assessed value. Although we might want it to be an exact science, it is not. Keep in mind that property values are based on conditions as of January 1. That is why you might have a very low tax bill on new construction. Let’s say construction began February 2011 and completed July 2011. The tax bill will be based on vacant land because construction did not begin till after January 1. Ok, but what about existing properties. Since assessed value is determined January 1, the property appraiser uses property sales that occurred during 2010. However, it is an aggregate of sales and not necessarily what you might have actually paid for your home if you purchased one in 2010. Even if you have been in your home many years, your property is reassessed every year.

As I stated, it is not an exact science. Since it is a mass appraisal system (aggregate of sales), it is impossible for the appraiser to be aware of specific conditions with your particular property. So, you can challenge your assessed value. In order to do so you must file an appeal by the deadline specified in your TRIM notice. You can also attend hearings to express any concerns about budgets and tax rates. The date, time and place of the hearings are also on the TRIM notice. Take a look at your TRIM notice. You just might be able to do something about your property taxes.

With more than half the year over, I was very interested in seeing July’s numbers for the Tampa Bay area. Although I remained busy, many of my colleagues experienced a slight slowdown in July. Much of that can be attributed to school being out and vacations. With school starting in August, there should be an increase in activity with families hoping to be in their new home before school starts. It’s just that they would have needed to be under contract already in order to close in August. I think that many people relocating from other parts of the country are not aware that school starts in August in the Tampa Bay area and throughout most of Florida. Now on to the numbers!

Sales for July 2011 were down slightly from June 2011. However, inventories were also down so proportionately sales were stable. Sales were actually 20 % higher in July of this year compared to July 2010. It’s actually quite significant considering that inventories are down by about 36%. Months inventory is at 5.5 which is half of where it was this time last year. Year to date, sales are around 11% higher than last year. Average sales price did decrease by 3% in July 2011 over June 2011 but is still 16% higher than in January of this year.

With the unfortunate debt crisis and subsequent impact on the bond rating, it will be significant to see the impact on the housing market in general and on the Tampa Bay area specifically. I have not seen any impact on any of my clients, yet. People are still getting mortgages at very low rates and I have not seen a decline in people buying or selling. Let’s keep our fingers crossed.